Initial January Europe C2, C3 contracts fall by around half

16 December 2008 15:08  [Source: ICIS news]

LONDON (ICIS news)--Initial European ethylene (C2), and propylene (C3) monthly contracts for January have been agreed down €600/tonne ($822/tonne) and €523/tonne respectively, a key producer and integrated consumer said on Tuesday.

An historic decrease had been anticipated by all on the back of sharply weaker naphtha feedstock levels and a dramatic decline in derivative demand.

January ethylene at €520/tonne (FD) free delivered (NWE) northwest Europe was down around 54% from its fourth quarter level of  €1,120/tonne. January propylene was also down by a similar amount at at €430/tonne, compared to its fourth quarter value of €953/tonne.

These are the first monthly contracts to be publicly reported since December 2006, although a handful of supply contracts are known to be priced on a monthly basis, these have been kept private and confidential.

($1 = €0.73)

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By: Nel Weddle
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